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Recordkeeping Requirements Under the IRA

Learn IRA recordkeeping rules: keep apprenticeship and wage compliance records for 7 years to stay audit-ready and protect tax credits.

Updated over 2 months ago

To remain compliant with the Inflation Reduction Act (IRA), contractors must keep detailed records proving both prevailing wage and apprenticeship compliance. These records provide the evidence auditors need to confirm that your project qualifies for enhanced tax credits.


How Long to Keep Records

  • All IRA compliance records must be kept for at least 7 years.

  • This retention period ensures documents are available for both IRS and Department of Labor (DOL) audits.


Required Records for Apprenticeships

You must maintain documentation showing that apprentices were properly registered and supervised, including:

  • Signed Apprenticeship Agreements (Form 671)

  • Apprenticeship Standards and Appendix A wage schedules

  • Apprentice-to-journeyman ratio compliance (from certified payroll)

  • Apprentice labor-hour totals and allocations (from Apprentix)

  • Davis-Bacon certificates (renewed every 90 days for prevailing wage projects)


Required Records for Prevailing Wage

For prevailing wage compliance, auditors typically request:

  • Certified payroll records (WH-347)

  • Apprentice and Trainee Worksheet (WH-357)

  • Local wage determinations from SAM.gov

  • Proof of back wages or corrections if applicable


Best Practices for Audit Readiness

  • Use Apprentix to store all apprenticeship-related documents in one place.

  • Keep certified payroll and wage documentation with your payroll provider.

  • Ensure each apprentice’s hours in Apprentix match payroll totals.

  • Add notes in time entries like “Matches payroll MM/DD/YY – MM/DD/YY” for audit clarity.


Why Good Recordkeeping Matters

If records are incomplete, your project may lose eligibility for enhanced tax credits, even if apprentices were properly used. Auditors require clear evidence, and poor recordkeeping often leads to penalties.

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